Supplier Spotlight:
BY KERRY PIPES
CAPITAL RESOURCES
Direct Capital offers full spectrum of financing solutions
S
mart franchise brands—and worked closely with some franchise
especially growing franchi- brands to create custom online
sees—are always on the look- finance portals that highlight and
out for resources that will help them recommend equipment upgrades
expand the business. For some, a based on current mandates from
healthy business model that gen- the brand. Says Solomon, “We diserates steady revenue and profits tinguish ourselves from fin-tech
allows for reinvesting their own competitors and traditional banks
capital. For others, external
financing plays a key strategic role. Of course there are
local and national banks,
but specialized third-party
lenders have become a much big- primarily through our commitment
ger part of the franchising lending to product innovation, where ‘speed
landscape. There are a number of and ease’ is our constant mantra.”
players in this sector. One of them
Beyond sheer growth through
is Direct Capital.
unit acquisition and
Once a small-ticket
new build-outs, franlender, Direct Capital
chisees also need
was acquired by CIT
capital to buy equipBank in 2014, which
ment, remodel loprovided an infusion
cations, handle upof capital that has
grades, refinance
made the company
debt, or establish a
a major player and
line of credit. Direct
source of financing in
Capital can handle all
franchising. The comthose needs. When
pany offers financing
offering a loan, the
options ranging from
company takes into
just $2,000 up to $20
account personal and
million. And, as a fibusiness credit, the
nancial-technology Douglas Solomon
experience of the
(fin-tech) company,
franchisee, and the
Direct Capital can get funds in ac- strength of the brand. “We place a
tion quickly through its online setup: high value on the brand’s strength,
loan application and approval can which often opens the door for franhappen in just minutes.
chisees to secure loans they might
“We have streamlined a process not have otherwise obtained,” says
for franchisees to apply for financing Solomon.
anytime, anywhere with our simple
online finance center,” explains How it works
Direct Capital’s Vice President of All of Direct Capital’s programs have
Strategic Relationships Douglas term lengths ranging from 3 months
Solomon. The company has also to 7 years. For most transactions, a
86
franchisee can get started with the
completion of a simple one-page
application, either online or with
the help of one of their dedicated
franchise account managers. Approvals are typically issued within
24 hours of receiving the request.
Once approved, the franchisee
is able to choose their
term length and finance
structure, then sign the
finance contracts online
right through their smartphone or computer.
After the contracts have been
signed, the franchisee is able to
direct their account manager on
how they would like to release
the funds; whether their vendor or
contractor needs a deposit or full
payment, the franchisee controls
the entire process.
Direct Capital has worked with
franchise brands ranging from Denny’s and Dunkin’ Donuts to Choice
Hotels International and Wyndham
Hotel Group. Working with so many
brands, says Solomon, allows the
company to keep its finger on the
pulse of franchising. “We are currently seeing an increase in store
acquisitions where larger multi-unit
franchisees are buying out singleunit and low volume multi-unit operators,” he says. He says the future
looks good in the QSR, hospitality
and printing sectors, and that they
typically see a higher demand in
the QSR space.
“As franchisees demand more
services from financing institutions—and are demanding them
faster than ever before—our team
continues to blaze a trail of innovation,” says Solomon. ■
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